Alibaba’s eye-catching $25bn IPO in September took tech IPOs to a new level. And new data from PwC has confirmed that global technology IPOs are booming. Jason Sinclair looks behind the numbers.
PwC’s tech report for Q2 2014 found that 43 global tech sector IPOs raised $12.3bn (£7.68bn), a year-on-year increase in the number of deals of 153% and deal size of 327% respectively. Compared to Q1 2014, the number of deals rose 65% and deal size was up 79%. During the first half of 2014, there were more technology IPOs completed and dollars raised than in the whole of 2013.
Raman Chitkara, global technology industry leader at PwC, said that “with the results this quarter, the first half of 2014 has now witnessed more tech IPOs than all of 2013. Barring a major market disruption, 2014 has the potential to surpass even pre-financial crisis global tech IPO activity.”
Mention of the year 2000 could act as a warning bell for those whose instincts veer towards shouting “bubble”, but most analysts see the market’s fundamentals as being far stronger than in those frothy days, with mature companies open for investment after gaining a solid track record.
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